Published on 2/27/2014 in the Prospect News Investment Grade Daily.
New Issue: Williams Partners prices $1.5 billion of notes in 10-, 30-year tranches
By Aleesia Forni
Virginia Beach, Feb. 27 - Williams Partners LP was in Thursday's market with a $1.5 billion two-tranche offering of senior notes (Baa2/BBB/), according to a market source and an FWP filed with the Securities and Exchange Commission.
There was $1 billion of 4.3% notes due 2024 priced at 99.791 to yield 4.326%, or Treasuries plus 168 basis points.
A second tranche was $500 million 5.4% 30-year bonds sold at Treasuries plus 183 basis points, or 99.676 to yield 5.422%.
Both tranches of the company's sale priced at the tight end of talk.
BofA Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Mitsubishi UFJ Securities (USA) Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to repay amounts outstanding under the company's commercial paper program, to fund capital expenditures and for general partnership purposes.
Williams Partners is a Tulsa, Okla.-based energy infrastructure company.
| Issuer: | Williams Partners LP
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Joint bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Mitsubishi UFJ Securities (USA) Inc., Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | DNB Markets Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments Inc., BBVA Securities Inc., SMBC Nikko Securities America Inc., TD Securities (USA) LLC, BOSC Inc., Raymond James & Associates Inc.
|
| Trade date: | Feb. 27
|
| Settlement date: | March 4
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| Notes due 2024
|
| Amount: | $1 billion
|
| Maturity: | March 4, 2024
|
| Coupon: | 4.3%
|
| Price: | 99.791
|
| Yield: | 4.326%
|
| Spread: | Treasuries plus 168 bps
|
| Price talk: | Treasuries plus 170 bps area, tightened from Treasuries plus 175 bps to 180 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Dec. 4, 2023, then callable at par
|
|
|
| Notes due 2044
|
| Amount: | $1 billion
|
| Maturity: | March 4, 2044
|
| Coupon: | 5.4%
|
| Price: | 99.676
|
| Yield: | 5.422%
|
| Spread: | Treasuries plus 183 bps
|
| Price talk: | Treasuries plus 185 bps area, tightened from Treasuries plus 190 bps to 195 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Sept. 4, 2043, then callable at par
|
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